The Department for Culture, Media and Sport said that early drafts of the document had been circulated among stakeholders.

"The content and proposals for the strategy have been significantly developed since then and a comprehensive plan to bolster the UK's creative industries will be published shortly," it added.

"We will not comment on the content of the leaked document."

Voluntary scheme

The Times suggested that broadband firms which failed to enforce the rules could be prosecuted, and the details of customers suspected of making illegal downloads made available to the courts.

According to the Times, the draft paper states: "We will move to legislate to require internet service providers to take action on illegal file sharing."

Internet providers are no more able to inspect and filter every single packet passing across their network than the Post Office is able to open every envelope,

Internet Service Providers Association

Some of the UK's biggest internet providers, such as BT, Virgin and Tiscali have been in talks with the entertainment industry over introducing a voluntary scheme for policing pirate activity, but no agreement has been reached.

So far, they have failed to resolve how disputed allegations would be arbitrated - for example, when customers claim other people have been "piggybacking" on their internet service.

'No liability'

Technology that allows internet providers to monitor what content is being downloaded is becoming more effective, said James Bates, media director at consultants Deloitte.

"This is also likely to help accelerate the process of identifying pirates, and may lead to swifter disconnection, or prosecution," Mr Bates said.

However, the Internet Service Providers Association said data protection laws would prevent providers from looking at the content of information sent over their networks.